PRE-QUALIFY!
A Pre-Qualification determines your “purchase power” and helps broadly define the price range of homes your should be considering. A pre-qualification is not a commitment to lend. We recommend you obtain a full pre-approval which is a step above pre-qualification and is a commitment to lend.
PRE-APPROVE!
Obtaining “Pre-Approval” status provides a distinct advantage for the homebuyer. We will help you select a mortgage that meets your needs and estimate a loan amount that fits your financial situation. A review of your credit report, employment history and assets will be conducted. In fact, we’ll do everything needed to approve your mortgage in advance of locating a property! Once you find a home, generally all that is needed to close is a satisfactory appraisal, insurance policy and title commitment. We can obtain your information directly over the phone and pre-approve most clients within an hour through our automated systems!
A Pre-Approval provides the following benefits …
DEFINED PURCHASE POWER
You know the exact price range you can comfortably afford! Since you know what your purchasing power is, you won’t choose a home that is far below what you really can afford or worse yet, far above what you will qualify for when you apply. Save yourself the heartache of finding a home you love only to find that is it slightly out of your price range.
GREATER FLEXIBILITY AND LEVERAGE WITH THE SELLER
You will have more negotiating power because the seller and Realtor®s know you qualify for a loan! A seller’s greatest fear is that they will accept a Purchase Contract from a buyer, who is then turned down for a mortgage 3-4 weeks after the offer is accepted. The seller has made plans to move and has already taken their house off the market. If a seller knows in advance that a potential buyer is already approved for a mortgage, studies have shown that they have a greater willingness to negotiate because you have eliminated their greatest fear.
INCREASED CONFIDENCE
You reduce the level of anxiety usually associated with the home-buying process!
LESS TIME AND HASSLE
You can close faster – most of the application process is already complete!
Which Mortgage is Best for YOU?
- FHA
- VA
- Conventional
- USDA
- Jumbo
- 30 – Year Fixed
- 15 – Year Fixed
- “ARM” Adjustable Rate Mortgage
FHA
- As little as 3.5% down
- Allows gift funds for down payment
- Allows slightly higher debt/income ratios
- Credit scoring is less critical
- Have had credit problems in the past
- Amount of loan is limited
VA
- 100% financing for Veterans
- More relaxed debt/income ratios allowed
- Rates are fixed for 15 or 30 years
- Amount of loan is limited
Conventional
- Requires down payment of between 3% and 25% of selling price
- Stricter credit standards
30-Year Fixed
- Interest rate and monthly payment remain the same for 30 years
15-Year Fixed
- Interest rate and monthly payment remain the same for 15 years
- Best for fast reduction of loan
- Want to take advantage of lowest interest rate possible
“ARM’s” – Adjustable Rate Mortgages
- Lower initial interest rate
- Interest rate is adjusted periodically
- Payment is subject to change
- Various loan programs
